The role of the G7 in solving global debt crises

Photo: Protestaktion in Bonn

©erlassjahr

On the occasion of the meeting of the G7 finance ministers at Petersberg in Königswinter from 18 to 20 May, the German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE), erlassjahr.de and Misereor held an expert discussion on the role of the G7 in solving global debt crises on 19 May. The event centered on a panel discussion between representatives of the World Bank, the German Federal Ministry of Finance, a rating agency (Scope Ratings), the African Sovereign Debt Justice Network, and the Chairman of the Alliance of Small Island States (AOSIS). Above all, the G7 should foster a timely and speedy implementation of the Common Framework for Debt Treatment initiated by the G20 and the Paris Club. According to the representatives of the German Ministry of Finance and the World Bank, the G7 should promote the formation of creditor committees and support the suspension of debt service payments during debt restructuring. In addition, the representative of AOSIS in particular called for the G7 to support sustainable debt resolution mechanisms. Furthermore, to improve creditor coordination, the G7 should support the inclusion and application of aggregated collective action clauses in bond agreements, according to the representatives of Scope Rating and Federal Ministry of Finance. The event took place within the framework of the G7 engagement processes Civil7 (C7) and Think7 (T7) on the occasion of the German G7 Presidency 2022.

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